Cash Flows from Operating Activities-Indirect Method
the Data Below Are

question 158

Essay

Cash flows from operating activities-indirect method
The data below are taken from the financial statements of the Spectrum Corporation:
Complete the partial statement of cash flows for the year ended December 31, 2009, showing the computation of net cash flows from operating activities by the indirect method:
$$\begin{array} { | l | l | l | } \hline \text { Income Statement: } & 2009 & \\\hline & & \\\hline \text { Net income } & \$ 299,000 & \\\hline \text { Depreciation expense } & 101,000 & \\\hline \text { Amortization of trademark } & 20,000 & \\\hline \text { Loss on sale of machinery } & 38,000 & \\\hline & & \\\hline \text { Balance Sheet: } & 12 / 31 / 09 & 12 / 31 / 08 \\\hline & & \\\hline \text { Accounts receivable } & \$ 195,000 & \$ 204,000 \\\hline \text { Inventory } & 353,000 & 321,000 \\\hline \text { Prepaid expenses } & 50,000 & 38,000 \\\hline \text { Accounts payable } & 314,000 & 290,000 \\\hline \text { Accrued expenses payable } & 158,000 & 159,000 \\\hline\end{array}$$ $\text {SPRECTRUM CORPORATION}$
$\text { Partial Statement of Cash Flows }$
$\text {For the Year Ended December 31, 2009}$
$\begin{array}{|l|l|}\hline \text { Cash flows from operating activities (indirect } & \\\text { method): } & \\\hline \text { Net income } &\$ \\ \hline \text { Add: } & \\\hline &\underline{\quad\quad} \\\hline \text { Subtotal } & \$ \\\hline \text { Less: } & \\\hline &\underline{\quad\quad} \\\hline \text { Net cash flows from operating activities } & \$ \\\hline\end{array}$

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Definitions:

Feedback from Stakeholders

Opinions, concerns, and suggestions provided by individuals or groups who have an interest in the outcome of a project or organization.

Collaboration Between Administrations

Collaboration between administrations involves cooperative efforts between different government entities or departments to achieve shared goals or address common challenges.

Family Involvement Practices

Family involvement practices encompass activities and strategies that schools and communities deploy to engage families in the educational and developmental processes of their children.

Deficit Model

A perspective that focuses on what individuals lack in terms of knowledge, skills, or abilities, often overlooking their strengths.